Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that
total revenue for the three month period ended September 30, 2017
was approximately $1,591,000 compared to approximately $1,169,000
for the three month period ended September 30, 2016, an increase of
$422,000, or 36.1%. The increase in revenue represents an increase
in lending operations. For the three month periods ended September
30, 2017 and 2016, approximately $1,352,000 and $960,000,
respectively, of our revenues were attributable to interest income
on the secured commercial loans that we offer to small businesses,
and approximately $240,000 and $209,000, respectively, of the
Company’s revenues were attributable to origination fees on such
loans.
Net income for the three month period ended
September 30, 2017 was approximately $961,000 or $0.12 per basic
and diluted share (based on approximately 8.1 million
weighted-average outstanding common shares), versus net income of
approximately $725,000 or $0.10 per basic and diluted share (based
on approximately 7.6 million weighted-average outstanding common
shares) for the three month period ended September 30, 2016, an
increase of $236,000, or 32.6%. This increase in net income was
mainly due to an increase in operating income as a result of
increased lending activity.
Total revenue for the nine month period ended
September 30, 2017 was approximately $4,322,000 compared to
approximately $3,440,000 for the nine month period ended September
30, 2016, an increase of $882,000, or 25.6%. The increase in
revenue represents an increase in lending operations. For the nine
month periods ended September 30, 2017 and 2016, revenues of
approximately $3,647,000 and $2,849,000, respectively, were
attributable to interest income on the secured commercial loans
that we offer to small businesses, and approximately $675,000 and
$591,000, respectively, were attributable to origination fees on
such loans.
Net income for the nine month period ended
September 30, 2017 was approximately $2,592,000 or $0.32 per basic
and diluted share (based on approximately 8.1 million
weighted-average outstanding common shares), versus net income of
approximately $2,130,000 or $0.29 per basic and diluted share
(based on approximately 7.4 million weighted-average outstanding
common shares) for the same period in 2016, an increase of
$462,000, or 21.7%. This increase in net income was mainly due to
an increase in operating income as a result of increased lending
activity.
As of September 30, 2017, total shareholders'
equity was approximately $23,120,000 compared to approximately
$22,314,000 as of December 31, 2016, an increase of $806,000.
On August 8, 2017, the Company amended and
restated certain terms of its existing credit line agreement with
Webster Business Credit Corporation and Flushing Bank to further
increase the credit line from $15 million to $20 million.
Assaf Ran, Chairman of the Board and CEO stated,
“The numbers speak for themselves; we believe that we offer our
shareholders not only generous quarterly dividends but also steady
and responsible growth. The increase of the bank line of credit
from $14 million to $20 million during the third quarter, provided
the necessary funds for this quarter’s performance.”
About Manhattan Bridge Capital, Inc.
Manhattan Bridge Capital, Inc. offers short-term
secured, non–banking loans (sometimes referred to as ‘‘hard money’’
loans) to real estate investors to fund their acquisition,
renovation, rehabilitation or improvement of properties located in
the New York metropolitan area. We operate the web site:
http://www.manhattanbridgecapital.com
Forward Looking Statements
This press release and the statements of our
representatives related thereto contain or may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements that are not
statements of historical fact may be deemed to be forward-looking
statements. Without limiting the generality of the foregoing, words
such as “plan,” “project,” “potential,” “seek,” “may,” “will,”
“expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,”
or “continue” are intended to identify forward-looking statements.
For example, when we state that we offer generous dividends and
sturdy growth we are using forward-looking statements. Readers are
cautioned that certain important factors may affect the Company’s
actual results and could cause such results to differ materially
from any forward-looking statements that may be made in this news
release. Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties. Actual results may
differ materially from those projected, expressed or implied in the
forward-looking statements as a result of various factors,
including but not limited to the following: (i) we have limited
operating history as a Real Estate Investment Trust (“REIT”); (ii)
our loan origination activities, revenues and profits are limited
by available funds; (iii) we operate in a highly competitive market
and competition may limit our ability to originate loans with
favorable interest rates; (iv) our chief executive officer is
critical to our business and our future success may depend on our
ability to retain him; (v) if we overestimate the yields on our
loans or incorrectly value the collateral securing the loan, we may
experience losses; (vi) we may be subject to “lender liability”
claims; (vii) our loan portfolio is illiquid; (viii) our due
diligence may not uncover all of a borrower’s liabilities or other
risks to its business; (ix) borrower concentration could lead to
significant losses; (x) our management has limited experience
managing a REIT; and (xi) we may choose to make distributions in
our own stock, in which case you may be required to pay income
taxes in excess of the cash dividends you receive. The risk factors
contained in our Annual Report on Form 10-K for the fiscal year
ended December 31, 2016 filed with the Securities and Exchange
Commission identify important factors that could cause such
differences. These forward-looking statements speak only as of the
date of this press release, and we caution potential investors not
to place undue reliance on such statements. We undertake no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE SHEETS |
|
|
September 30,
2017(unaudited) |
|
December 31,
2016(audited) |
Assets |
|
|
|
|
|
|
|
Loans
receivable |
$ |
44,419,950 |
|
|
$ |
34,755,320 |
|
Interest
receivable on loans |
|
508,342 |
|
|
|
346,519 |
|
Cash and
cash equivalents |
|
112,184 |
|
|
|
96,299 |
|
Deferred
financing costs |
|
60,250 |
|
|
|
56,193 |
|
Investment in privately held company |
|
15,000 |
|
|
|
35,000 |
|
Other
assets |
|
58,384 |
|
|
|
44,193 |
|
Total assets |
$ |
45,174,110 |
|
|
$ |
35,333,524 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Line of
credit |
$ |
16,174,495 |
|
|
$ |
6,482,848 |
|
Senior
secured notes (net of deferred financing costs of $641,355 and
$697,669, respectively) |
|
5,358,645 |
|
|
|
5,302,331 |
|
Deferred
origination fees |
|
390,743 |
|
|
|
315,411 |
|
Accounts
payable and accrued expenses |
|
130,270 |
|
|
|
105,541 |
|
Dividends
payable |
|
--- |
|
|
|
813,503 |
|
Total liabilities |
|
22,054,153 |
|
|
|
13,019,634 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred
shares - $.01 par value; 5,000,000 authorized; none issued |
|
--- |
|
|
|
--- |
|
Common
shares - $.001 par value; 25,000,000 authorized; 8,319,036 and
8,312,036 issued; 8,108,934 and 8,135,036 outstanding,
respectively |
|
8,319 |
|
|
|
8,312 |
|
Additional paid-in capital |
|
23,164,245 |
|
|
|
23,134,013 |
|
Treasury
stock, at cost – 210,102 and 177,000 shares, respectively |
|
(541,491 |
) |
|
|
(369,335 |
) |
Retained
earnings (Accumulated deficit) |
|
488,884 |
|
|
|
(459,100 |
) |
Total stockholders’ equity |
|
23,119,957 |
|
|
|
22,313,890 |
|
Total liabilities and stockholders’ equity |
$ |
45,174,110 |
|
|
$ |
35,333,524 |
|
|
|
|
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited) |
|
|
Three Months Ended September
30, |
Nine Months Ended September
30, |
|
|
2017 |
|
|
2016 |
|
2017 |
|
|
2016 |
|
Interest income from loans |
$ |
1,351,788 |
|
$ |
960,274 |
$ |
3,646,535 |
|
$ |
2,848,516 |
|
Origination fees |
|
239,675 |
|
|
208,951 |
|
675,434 |
|
|
591,191 |
|
Total revenue |
|
1,591,463 |
|
|
1,169,225 |
|
4,321,969 |
|
|
3,439,707 |
|
|
|
|
|
|
Operating
costs and expenses: |
|
|
|
|
Interest
and amortization of debt service costs |
|
352,359 |
|
|
205,449 |
|
861,591 |
|
|
593,749 |
|
Referral
fees |
|
750 |
|
|
2,263 |
|
2,951 |
|
|
5,525 |
|
General
and administrative expenses |
|
266,534 |
|
|
236,972 |
|
842,520 |
|
|
698,356 |
|
Total operating costs and expenses |
|
619,643 |
|
|
444,684 |
|
1,707,062 |
|
|
1,297,630 |
|
Income
from operations |
|
971,820 |
|
|
724,541 |
|
2,614,907 |
|
|
2,142,077 |
|
Loss on
write-down of investment in privately held company |
|
(10,000 |
) |
|
--- |
|
(20,000 |
) |
|
(10,000 |
) |
Income
before income tax expense |
|
961,820 |
|
|
724,541 |
|
2,594,907 |
|
|
2,132,077 |
|
Income
tax expense |
|
(1,099 |
) |
|
--- |
|
(2,971 |
) |
|
(2,146 |
) |
Net income |
$ |
960,721 |
|
$ |
724,541 |
$ |
2,591,936 |
|
$ |
2,129,931 |
|
|
|
|
|
|
Basic and
diluted net income per common share outstanding: |
|
|
|
|
--Basic |
$ |
0.12 |
|
$ |
0.10 |
$ |
0.32 |
|
$ |
0.29 |
|
--Diluted |
$ |
0.12 |
|
$ |
0.10 |
$ |
0.32 |
|
$ |
0.29 |
|
|
|
|
|
|
Weighted
average number of common shares outstanding |
|
|
|
|
--Basic |
|
8,106,499 |
|
|
7,598,626 |
|
8,120,091 |
|
|
7,407,787 |
|
--Diluted |
|
8,117,151 |
|
|
7,623,635 |
|
8,131,400 |
|
|
7,426,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited) |
|
|
|
Nine Months Ended September
30, |
|
|
|
2017 |
|
|
|
2016 |
|
Cash flows from
operating activities: |
|
|
|
|
Net income |
|
$ |
2,591,936 |
|
|
$ |
2,129,931 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities - |
|
|
|
|
Amortization of
deferred financing costs |
|
|
95,378 |
|
|
|
51,474 |
|
Depreciation |
|
|
3,398 |
|
|
|
2,752 |
|
Non cash
compensation expense |
|
|
9,798 |
|
|
|
10,192 |
|
Loss on
write-down of investment in privately held company |
|
|
20,000 |
|
|
|
10,000 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
Interest
receivable on loans |
|
|
(161,823 |
) |
|
|
78,234 |
|
Other
assets |
|
|
(15,922 |
) |
|
|
(16,809 |
) |
Accounts
payable and accrued expenses |
|
|
24,730 |
|
|
|
(27,702 |
) |
Deferred
origination fees |
|
|
75,332 |
|
|
|
64,879 |
|
Net cash provided by operating activities |
|
|
2,642,827 |
|
|
|
2,302,951 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Issuance of
short term loans |
|
|
(30,314,500 |
) |
|
|
(24,299,500 |
) |
Collections
received from loans |
|
|
20,649,870 |
|
|
|
23,671,720 |
|
Purchase of
fixed assets |
|
|
(1,666 |
) |
|
|
(3,019 |
) |
Net cash
used in investing activities |
|
|
(9,666,296 |
) |
|
|
(630,799 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Proceeds from
(repayments of) line of credit, net |
|
|
9,691,647 |
|
|
|
(7,558,044 |
) |
Repayments of
short-term loans, net |
|
|
--- |
|
|
|
(1,095,620 |
) |
Cash restricted
for reduction of line of credit |
|
|
--- |
|
|
|
(919,352 |
) |
Proceeds from
public offerings, net |
|
|
--- |
|
|
|
9,539,347 |
|
Deferred
financing costs |
|
|
(43,122 |
) |
|
|
--- |
|
Proceeds from
exercise of stock options and warrants |
|
|
20,440 |
|
|
|
305,004 |
|
Purchase of
treasury shares |
|
|
(172,156 |
) |
|
|
--- |
|
Dividends
paid |
|
|
(2,457,455 |
) |
|
|
(1,891,804 |
) |
Net cash
provided by (used in) financing activities |
|
|
7,039,354 |
|
|
|
(1,620,469 |
) |
|
|
|
|
|
Net increase in cash
and cash equivalents |
|
|
15,885 |
|
|
|
51,683 |
|
Cash and cash
equivalents, beginning of period |
|
|
96,299 |
|
|
|
106,836 |
|
Cash and cash
equivalents, end of period |
|
$ |
112,184 |
|
|
$ |
158,519 |
|
|
|
|
|
|
Supplemental cash flow
information: |
|
|
|
|
Taxes paid during the
period |
|
$ |
2,971 |
|
|
$ |
1,948 |
|
Interest paid during
the period |
|
$ |
713,428 |
|
|
$ |
546,015 |
|
|
|
|
|
|
|
|
|
|
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
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